(a) A successor of a beneficiary may consent to amendments, sign
and present documents, and receive payment or other items of value in the name
of the beneficiary without disclosing its status as a successor.

(b) A successor of a beneficiary may consent to amendments, sign
and present documents, and receive payment or other items of value in its own
name as the disclosed successor of the beneficiary. Except as otherwise
provided in subsection (e) of this section, an issuer shall recognize a
disclosed successor of a beneficiary as beneficiary in full substitution for
its predecessor upon compliance with the requirements for recognition by the
issuer of a transfer of drawing rights by operation of law under the standard
practice referred to in G.S. 25-5-108(e) or, in the absence of such a practice,
compliance with other reasonable procedures sufficient to protect the issuer.

(c) An issuer is not obliged to determine whether a purported
successor is a successor of a beneficiary or whether the signature of a
purported successor is genuine or authorized.

(d) Honor of a purported successor's apparently complying
presentation under subsection (a) or (b) of this section has the consequences
specified in G.S. 25-5-108(i) even if the purported successor is not the
successor of a beneficiary. Documents signed in the name of the beneficiary or
of a disclosed successor by a person who is neither the beneficiary nor the
successor of the beneficiary are forged documents for the purposes of G.S. 25-5-109.

(e) An issuer whose rights of reimbursement are not covered by
subsection (d) of this section or substantially similar law and any confirmer
or nominated person may decline to recognize a presentation under subsection
(b) of this section.

(f) A beneficiary whose name is changed after the issuance of a
letter of credit has the same rights and obligations as a successor of a
beneficiary under this section. (1999-73, s. 1.)